Bankruptcy is a legal debt resolution option that is provided for under the Federal Bankruptcy Act. There are also provisions in state law governing how bankruptcy cases are implemented. When you have a lot of unmanageable debt and would like to get legal protections from creditors, all you need to do is file for bankruptcy. A chapter 13 Oakland residents should know, is a personal bankruptcy.
While there may be a number of bankruptcy options available to debtors, this chapter is the best for individual consumers who have a reliable income source. This is because it is less punitive. After all, the debtor does not lose any of their assets or personal belongings through an auction.
Hiring a competent bankruptcy lawyer is necessary when you want to seek bankruptcy protections. Therefore, you should take your time to identify a competent lawyer to help you out. The attorney will tell you everything about the pros and cons of this bankruptcy option.
Once the court receives your bankruptcy petition, the court will appoint a trustee. You will also be asked to come up with a repayment plan. The trustee can help you come up with a plan that is convenient for you and acceptable to the court and creditors.
There are many types of debts that cannot be subjected to bankruptcy proceedings. If you have an overdue tax bill, for instance, you must pay your taxes. If you have student loan debts or child support payments, you will be required to settle these debts without fail. This is because they cannot be forgiven through bankruptcy.
The main advantage of this bankruptcy option over chapter 7 is that your assets will not be touched as your debts will be settled through a convenient repayment plan. This means that you can avoid the embarrassment of having your personal belongings auctioned to get funds to settle your debts. It is also much more confidential as you can get rid of your debts without everyone knowing about your financial situation.
While bankruptcy can protect the debtor from being harassed by creditors as well as freeze any more interest and penalties from accruing, there are some drawbacks. First, you will be listed as a bankrupt consumer and a defaulter. This will make it hard for you to qualify for low interest loans, high paying jobs and renting anything. After all, most firms nowadays run credit checks on potential employees, tenants, renters and borrowers.
If you are declared bankrupt under this option, you should be careful not to default on the payment plan you proposed. This is because the debt restructuring plan will be converted into liquidation, so your assets will be auctioned to recover funds to pay off your debts. There is no use of seeking debt restructuring if you are not able to meet the terms and conditions. In fact, you should just file for chapter 7 and have your assets liquidated immediately so that you can start life afresh as soon as possible. Therefore, you should make the necessary changes in your life to ensure you can honor the payment plan for the restructured debt.
While there may be a number of bankruptcy options available to debtors, this chapter is the best for individual consumers who have a reliable income source. This is because it is less punitive. After all, the debtor does not lose any of their assets or personal belongings through an auction.
Hiring a competent bankruptcy lawyer is necessary when you want to seek bankruptcy protections. Therefore, you should take your time to identify a competent lawyer to help you out. The attorney will tell you everything about the pros and cons of this bankruptcy option.
Once the court receives your bankruptcy petition, the court will appoint a trustee. You will also be asked to come up with a repayment plan. The trustee can help you come up with a plan that is convenient for you and acceptable to the court and creditors.
There are many types of debts that cannot be subjected to bankruptcy proceedings. If you have an overdue tax bill, for instance, you must pay your taxes. If you have student loan debts or child support payments, you will be required to settle these debts without fail. This is because they cannot be forgiven through bankruptcy.
The main advantage of this bankruptcy option over chapter 7 is that your assets will not be touched as your debts will be settled through a convenient repayment plan. This means that you can avoid the embarrassment of having your personal belongings auctioned to get funds to settle your debts. It is also much more confidential as you can get rid of your debts without everyone knowing about your financial situation.
While bankruptcy can protect the debtor from being harassed by creditors as well as freeze any more interest and penalties from accruing, there are some drawbacks. First, you will be listed as a bankrupt consumer and a defaulter. This will make it hard for you to qualify for low interest loans, high paying jobs and renting anything. After all, most firms nowadays run credit checks on potential employees, tenants, renters and borrowers.
If you are declared bankrupt under this option, you should be careful not to default on the payment plan you proposed. This is because the debt restructuring plan will be converted into liquidation, so your assets will be auctioned to recover funds to pay off your debts. There is no use of seeking debt restructuring if you are not able to meet the terms and conditions. In fact, you should just file for chapter 7 and have your assets liquidated immediately so that you can start life afresh as soon as possible. Therefore, you should make the necessary changes in your life to ensure you can honor the payment plan for the restructured debt.
About the Author:
When you are searching for the facts about Chapter 13 Oakland residents can pay a visit to our web pages online today. More details are available at http://www.centralcoastbankruptcy.com/chapter-13.html now.
Tidak ada komentar:
Posting Komentar